Quote:I haven't heard that advert. but I would guess it involves one of the following scams:
Originally posted by meghal
Did anybody hear that ad on CINA radio about getting 90% return of your tax? I do not believe him for one second, but it would be interesting to find out how anybody can get 90% of tax in return.
- Investments in labor-sponsored funds
- Flow through shares
- Charitable contributions and "kickbacks"
- Selling "artworks" or "antique" items at paper losses
There are many organizations parading such schemes - watch out!
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by meghal
TFSA does not really count as tax exemption as you will still try to make maximum contribution to RRSP as well as utilise any other tax-exemption avenues. Whatever interest you can earn on 5K will be tax free
As we are going to file our first return in Canada, RRSP or any other options are not for us.
Also need important advice, we are here since late 2009. So for tax calculation purpose do CRA consider flat income or prorated income?? I am really confused because we have already paid heavy tax in previous country in same year of 2009 and not want to be double taxed.
Posts: 2873
Location: Western Hemisphere
Posted on: 08-12-09 13:38:42
Location: Western Hemisphere
Posted on: 08-12-09 13:38:42
Quote:
Originally posted by imwhoever
Also need important advice, we are here since late 2009. So for tax calculation purpose do CRA consider flat income or prorated income?? I am really confused because we have already paid heavy tax in previous country in same year of 2009 and not want to be double taxed.
You will be liable for taxes in Canada from the date you are considered a tax resident in Canada.
This tax resident date has zillion definitions per CRA; however, in simple common sense, it just means the date you consider yourself settled in a house in Canada and eat and sleep there.
When filing taxes, I believe there is a space to indicate the date you immigrated to or emigrated from Canada. You can choose the date that is most verifiable (by CRA), such as, say, the beginning date of the lease on your dwelling or maybe the date you entered Canada for the "final" time.
So, if you started the lease on Sep 1, 2009, you can declare yourself a tax resident from that time and if so, you will be liable for taxes from income earned inside and outside Canada (worldwide income) from Sep 1 through Dec 31, 2009.
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Dimple2001
Quote:
Originally posted by dimple2001
Quote:
Originally posted by imwhoever
Also need important advice, we are here since late 2009. So for tax calculation purpose do CRA consider flat income or prorated income?? I am really confused because we have already paid heavy tax in previous country in same year of 2009 and not want to be double taxed.
You will be liable for taxes in Canada from the date you are considered a tax resident in Canada.
This tax resident date has zillion definitions per CRA; however, in simple common sense, it just means the date you consider yourself settled in a house in Canada and eat and sleep there.
When filing taxes, I believe there is a space to indicate the date you immigrated to or emigrated from Canada. You can choose the date that is most verifiable (by CRA), such as, say, the beginning date of the lease on your dwelling or maybe the date you entered Canada for the "final" time.
So, if you started the lease on Sep 1, 2009, you can declare yourself a tax resident from that time and if so, you will be liable for taxes from income earned inside and outside Canada (worldwide income) from Sep 1 through Dec 31, 2009.
Thank you for clarification. But for example, our income from sept to dec 09 is $40000 (say 10k per month) and if converted in per year, its $120000, so employer has deducted taxes based on highest slab (around 40%). My confusion is whether we will be treated as flat $40000 or prorated to $120000 in tax year of 2009? If later is case, we will end up paying very high tax. While the fact is we have already paid higher tax before coming to Canada. So afer becoming tax resident of Canada we dont have any worldwide income but in current tax year we have income from two separate country, which dont have tax treaties in between.
Quote:That is the default, unless you have submitted a T-1 (could be wrong form#), which determines the rate of tax withholding at source.
Originally posted by imwhoever
Thank you for clarification. But for example, our income from sept to dec 09 is $40000 (say 10k per month) and if converted in per year, its $120000, so employer has deducted taxes based on highest slab (around 40%).
Quote:When you file for 2009, you will be assessed based on what you actually made - not pro-rated or anything like that.
My confusion is whether we will be treated as flat $40000 or prorated to $120000 in tax year of 2009?
You are assessed based on actuals, not projections.
Quote:As the post above said, after you became a resident from tax point of view, all your income is taxable in Canada if there is no tax treaty.
If later is case, we will end up paying very high tax. While the fact is we have already paid higher tax before coming to Canada. So afer becoming tax resident of Canada we dont have any worldwide income but in current tax year we have income from two separate country, which dont have tax treaties in between.
If $40,000 is your 4 month income then you will be assessed based on that.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by pratickm
Quote:That is the default, unless you have submitted a T-1 (could be wrong form#), which determines the rate of tax withholding at source.
Originally posted by imwhoever
Thank you for clarification. But for example, our income from sept to dec 09 is $40000 (say 10k per month) and if converted in per year, its $120000, so employer has deducted taxes based on highest slab (around 40%).
Quote:When you file for 2009, you will be assessed based on what you actually made - not pro-rated or anything like that.
My confusion is whether we will be treated as flat $40000 or prorated to $120000 in tax year of 2009?
You are assessed based on actuals, not projections.
Quote:As the post above said, after you became a resident from tax point of view, all your income is taxable in Canada if there is no tax treaty.
If later is case, we will end up paying very high tax. While the fact is we have already paid higher tax before coming to Canada. So afer becoming tax resident of Canada we dont have any worldwide income but in current tax year we have income from two separate country, which dont have tax treaties in between.
If $40,000 is your 4 month income then you will be assessed based on that.
Thank you for your help. I appreciate. I read about prorated income for first time tax payment in some other post or forum so confused. And we are in no mood to lose tax refund which could be around 10k.
